In what’s often referred to as loophole, GI Bill benefits count
as part of the 10%. That means, in theory, if a for-profit
receives the full 90% from the ED and the remaining 10% from the
VA, it could operate entirely on federal money.

For-profit colleges especially covet enrolling veterans for
this reason, which can lead to aggressive, and sometimes
deceptive, recruiting tactics.

The report disparaged for-profit colleges for abuses and the
share of GI Bill money they receive. It also revealed that of the top 10
institutions receiving GI Bill dollars, eight were for-profit
schools. Recently shuttered ITT Tech ranked third
on the list, according to the report.

Democratic presidential nominee Hillary Clinton has proposed to
close the 90-10 loophole but would likely face push
back from
Republican members of Congress who, in 2014, indicated that
stricter regulations around for-profit schools would inhibit
their ability to pass a new version of the Higher Education Act,
the federal law that dictates the provision.

Still, the for-profit sector seems willing to address the
criticism that it derives too much money from federal
sources. DeVry Education Group, one of the largest
for-profit college educators,
announced last week that it will limit the amount it receives
from federal student aid and GI Bill benefits.